I am eligible to salary sacrifice my home loan payments with my employer, being in a remote location.
I don't understand how this could be a saving...see below
say i earn $70K - current tax payable per annum is approx $17400 per annum including medicare levy, leaving a net salary of approx $52600.
My employer wil let me salary sacrifice my home loan payments up to $25K per annum. There is Fringe Benefits Tax to pay on this however. I am lead to believe this rate of tax on the $25000 is approx 43% or higher. This means i would pay approx $10750 in FBT as well as a $280 employer salary sacrifice fee, rather than $7875 Income Tax.
Is this correct?
Everyone at work raves about it but i am having trouble seeing the net benefit
Hope a more learned friend can show me how this works
OSS
I don't understand how this could be a saving...see below
say i earn $70K - current tax payable per annum is approx $17400 per annum including medicare levy, leaving a net salary of approx $52600.
My employer wil let me salary sacrifice my home loan payments up to $25K per annum. There is Fringe Benefits Tax to pay on this however. I am lead to believe this rate of tax on the $25000 is approx 43% or higher. This means i would pay approx $10750 in FBT as well as a $280 employer salary sacrifice fee, rather than $7875 Income Tax.
Is this correct?
Everyone at work raves about it but i am having trouble seeing the net benefit
Hope a more learned friend can show me how this works
OSS